The Andhra Pradesh government recently passed a Microfinance Bill which has forced microfinance institutions to reduce the number of loans disbursed on a recurring basis to borrowers in the state. Vijay Mahajan, head of the BASIX Group and President of Microfinance Institutions Networks (MFIN) , in an exclusive interview with CNBC-TV18 talks about the current scenario in Andhra Pradesh,India.
Loan Disbursements by Microfinance Companies fall drastically in Andhra Pradesh – India
In the below video , Vijay Mahajan reveals how MFI’s are facing difficultly in making new loans due to red tape and delays in government approval. He also reveals the steps and precautions being taken by MFIN and MFI’s to improve the situation at the ground level.